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In the Case of Atlas Supply Co of Canada V

Question 10

Multiple Choice

In the case of Atlas Supply Co of Canada v.Yarmouth Equipment (1991) ,103 NSR (2d) 1 (CA) ,the court considered whether a franchise agreement was unconscionable and therefore unenforceable because financial projections given by the franchisor were overly optimistic.Why did the court find that the contract was unconscionable?


A) because the agreement was illegal
B) because the franchisee and franchisor were in a relationship of good faith
C) because the franchisee acted promptly in seeking to avoid the contract
D) because the franchisor gave misleading financial information and withheld contrary information

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